Obama’s Latest Soak-the-Rich Scheme

Even when they’re not driving business success, the rich make a massive contribution to the economy with their spending. Liberals like economist Paul Krugman have long argued that the key to economic recovery is for the federal government to boost consumer spending, which comprises the largest share of the economy. What they don’t acknowledge is that spending by the wealthy is now almost singlehandedly fueling the consumer economy. According to the Wall Street Journal, the top 5 percent of Americans by income now account for 37 percent of consumer spending. Given that tax increases will reduce the spending levels of the rich, it’s not obvious why proponents of consumer spending as an economic remedy believe them to be a good idea.

Tax-hikes will also hinder another of the many contributions the rich make: their charitable activities. It’s no coincidence that the leading charitable foundations in this country – including the Ford, Carnegie, Rockefeller and Gates foundations – were founded from the fortunes of rich capitalists. Not only that, but the rich contribute a disproportionate share of their income and time to charity relative to the rest of the population. Columnist Deroy Murdock notes that in 2008 the top 10 percent of taxpayers paid 42 percent of all charitable deductions, for a total of $72 billion that year alone. The rich also volunteer more than average Americans. In 2009, Murdock points out, 78.7 percent of wealthy people volunteered with charitable organizations, as compared with a national average of 26.8 percent. Still, that hasn’t deterred class warfare scolds like the New York Times from grumbling that upper-income earners are stingy and suffer from a “compassion deficit.”

Even if the rich didn’t make important and generous contributions to the social and economic order, there is presently no compelling justification for new taxes on the wealthy. After all, rich Americans already bear the overwhelming brunt of the tax burden. The top 1 percent pay nearly 37 percent of all federal income taxes. The top 10 percent pay nearly 70 percent of all federal income taxes. For all the populist outrage-peddling about secretaries paying more than their multi-millionaire bosses, the reality is that the 400 richest Americans pay almost as much in federal income taxes as do the 50 percent of taxpayers in the bottom of the income distribution. These tax receipts go a long way toward funding government programs, including those that benefit-low income Americans. It might be fitting if Obama occasionally acknowledged his debt to those who pick up the check for his spending. Instead, he wants to squeeze them even more.

Jacob Laksin is a senior writer for Front Page Magazine. He is co-author, with David Horowitz, of The New Leviathan (Crown Forum, 2012), and One-Party Classroom (Crown Forum, 2009). Email him at jlaksin@gmail.com and follow him on Twitter at @jlaksin.

guest

“Entrepreneurship and capital investments by rich people are responsible for businesses that created 1.4 million jobs annually over the last decade.” As it happens, that’s a far better record of job creation than the government spending programs favored by Obama.

30years of trickle down has not worked. Why do you think this year will be different? Look at the definition of insanity.

Looking4Sanity

If it hasn't worked, as you erroneously claim, then why was our economy so good for the last 30 years?

If you want to see insanity…look in a mirror.

oldtimer

What I find funny is when the O said he wants to remove the tax cuts for the rich,,,including himself,,,,,, So, since Romney, because he is rich, is out of touch,,,doesn't that make O out of touch since he admitted that he also is rich?

oldtimer

Because the Dems are so bent on Romney showing his income tax return, I looked up O's income tax, and he and his wife gifted his children $12,000 each for a total of $48,000 off his income. I found that fascinating.

tagalog

Somebody send Obama one of those old Hell's Angels "1%er" patches.

Looking4Sanity

This is just one more textbook example of class warfare. Even taxing "the rich" at 100% would not make a dent in our deficit…let alone the National Debt. Furthermore, Obama knows this all too well. He's betting we're all too stupid to understand it though.

Let's put this in perspective. When you go looking for a job, do you intentionally seek out the brokest guy you can find to ask for a job? NO! You go to the guy who has the money to pay you! So. What's going to happen to jobs if we get rid of all those "rich guys"?

And where do you think Government gets its money from? The rich? Hell no! They get it from people like you, who in turn get it from the "rich guy". That's the way its always been and that's the way it HAS TO BE in order to work. It's called "CAPITALISM", people! You can never lift yourself up by dragging everyone else down. There is something seriously wrong with you if you think you can…and you'd feel right at home somewhere like Soviet Russia.

Johncdavidson

It is bad enough to have the leader of our nation lying about everything he is doing, but, sadly, he has an army of miscreants to back up his stories. Sadly, most of them will soon be in line at food banks that those working supply.

Wealth is created by producing; not by whining.

mrbean

Even the pedofile wannabe economist John Maynard Keynes pointed out in 1933 that lowering the tax rates can increase tax revenues, and if the tax rates are too high it will discourage economic activity. President John F. Kennedy made the same argument in the 1960s – and tax revenues increased after the tax rates were cut during his administration. The same thing happened under Ronald Reagan during the 1980s. And it happened again under George W. Bush, whose tax-rate cuts are scheduled to expire next January. The rich actually paid more total taxes, and a higher percentage of all taxes, after the Bush tax-rate cuts, because their incomes were rising with the rising economy. Is Obama just plain stupid or what?

mlcblog

Thank you, MB, for speaking English.

Diane Rossi

So let's give tax breaks and allow loopholes for the CEOs who make 10,000,000 a year and then outsource their jobs to other countries. Makes a lot of sense!

mrbean

With statements by Diane like that, I see why Ann Coulter bad mouth's how most women value their security more than freedom itself and have voted this country into debt to meet their "needs". My advice to a young man is never ever under any circumstance marry and American woman.

Spider

During the "08" campaign Obama in his speech was contemplating the virtues of raising the capital gains tax when one well informed speech goer spoke up – He correctly repeated the conclusion by the non-partisan CBO and other sources that in the past raising the CG tax always reduced the revenue to the government. And Obama's response.
"I still think we should do it because it is the right thing to do" In other words increasing revenue or reducing the deficit was the farthest thing from his mind, his real goal is to punish the successful simply because he hates them.

http://tarandfeathersusa.wordpress.com/ Iratus Vulgas

BO's tax policies are just a continuation of the Left's Marxist philosophy of wealth generation as practiced by such economic wizards as Lenin, Mao, and Castro. 1) Find out where the money is. 2) Take it. I must admit it's a simple system.

tagalog

I find it interesting that President Obama and his flacks have managed to spin the tax issue into a question of "tax cuts for the rich." The Bush tax cuts were across-the-board; everyone knows this. The effect of the Bush tax cuts was to provide tax relief for EVERYONE. All Americans. President Obama wants to end the Bush tax cuts on the rich, thereby raising their taxes (on top of the Obamacare middle-class tax increase), and on top of that, wants to be seen as the President of all of this while waging a tax war on both those who make more than $250,000 a year and those who make less.

When you come down to it, the only people President Obama is protecting is the 47% who don't pay any income tax at all. I guess they're economically under the middle class, eh? Personally, I'm fine with 47% of our population not paying any income tax – the more who don't pay taxes to the feds, the better. But I'm having a hard time understanding why President Obama doesn't want to spread tax relief all around, to ALL Americans instead of engaging in this class war against the people who make money.

tagalog

Furthermore, Obama wants to extend the Bush tax cuts for another year, and Republicans want to extend the Bush tax cuts indefinitely into the future. The tax relief sentiment should rightly be with the Republicans.

And I'm even more perplexed why Mitt Romney and his people haven't figured this out by now, and proceeded to attack Obama about this stuff.

tagalog

And if Obama wants tax money to pay for the massive deficits we're laboring under, why the hell doesn't he sponsor tax legislation that will tax that 47% (much as I hate the idea of taxing people who have managed to avoid taxation, bless 'em)? What does Obama think about THEIR fair share?

Mach1Duck

The economy without growth cannot support or sustain debt reduction or reform. We should be alert to the reality that regulations are shaped by incumbents to benefit themselves.

Organic, non-GMO avocado, fruit and nut trees and berries must be planted in all of our nation’s cities’ and towns’ parks to help the many millions of Americans who will soon be in a desperate struggle to survive because of the frightening, highly destructive economic policies of our government.

An INFERIOR, IMMORAL health care plan that NO ONE WANTS and CANNOT AFFORD TO PAY.

Massive spending as if there is no tomorrow. Fighting wars we have no money for. Massive borrowing.

The Massive giving away of BILLIONS of dollars every year to other countries, including the OIL-WEALTHY Middle East, Hamas-controlled Gaza and the Palestinian Authority organization who fill their war chests, build mansions and LAUGH all the way to the bank with FREE INFIDEL MONEY. Whilst in America, homeless shelters are filled to capacity; tent cities have sprung up all over the U.S. filled with desperate, jobless, homeless Americans.

Massive debt. The MASSIVE printing of paper money out of thin air to DELIBERATELY create out-of-control inflation. There is no question that the total DESTRUCTION of America's economy is PLANNED. The results will be horrifying. In the once wealthy and great nation of America, millions of Americans will become destitute, hungry and homeless with no money or resources to help them.

WilliamJamesWard

Aren't we as tax payers sick to death of paying and paying for irresponsible use of our funds and the
loss we see in our lives as to what we can have for ourselves and our families after working for and
income. The things that would make life better are not there because the government takes the
money for it's political backers, the problem is it leaves to little for the working person who has to
go into debt for necessities and extras and loss of the ability to give to charity of choice.
Government should be returned to being limited and lose the force of oppressive intrusion
by forced confiscation of our wealth. The government is the worst enemy facing the American people.
……………….William

mlcblog

Stupid, or willfully ignorant? He doesn't seem to know that when taxes are raised, especially on the producers,. govt income goes down.

Ronald Johnston

osama obama, the evil muslim terrorist plant!!!!

THETAXMAN

Lets just kill all the millionaires, confiscate their estates and have a fun time. Certainly a good possibility by marxist standards and the POTUS has most certainly flirted with, if not married, that phylosophy.